Wage Inequality and Worker Turnover Intention

Abstract

This paper examines the relationship between wage inequality and worker turnover intention. Wage inequality is measured in terms of pay disparity and discriminatory promotion, while worker turnover intention is measured in employee absenteeism and job search. This paper is designed as a theoretical review that provides a conceptual framework detailing the direction and the nature of the relationship between the variables. From the literature reviewed, it was revealed that wage inequality positively correlates with worker turnover intention. All the dimensions of wage inequality, pay disparity, and discriminatory promotion positively correlate with worker turnover intention measures of employee absenteeism and job search. The study, therefore, concludes that wage inequality predicts worker turnover intention. The study recommends that organizations should administer fair and equal pay and promotion, ensuring equal treatment of employees in wage and promotion administration in the workplace. Keywords: Wage, Inequality, Worker, Turnover, Intention